Congress over the weekend put an end to a decades-long fight by federal and state public service workers in a bid to restore their full Social Security benefits.
The Social Security Fairness Act, which was co-written by Sen. Susan Collins, will eliminate what's known as the Windfall Elimination Provision and Government Pension Offset.
Together, these provisions have prevented more than 25,000 Mainers from receiving their full Social Security benefits, including Penny Whitney-Asdourian, who spent more than 30 years working for the Maine Judicial Branch.
Her husband is a retired firefighter. Together, she said these penalties have cut their combined Social Security benefits by about $1,200 a month.
"To think that you've paid into Social Security, you can't get back what you pay in or what your benefit is supposed to be," she said. "It's just been a huge slap in the face, because you chose a career in public service."
The Windfall Elimination Provision, enacted in the early 1980s, reduces Social Security benefits for workers who worked in a public sector position and a receive a pension not covered by Social Security, and a job that is covered by Social Security, often in the private sector.
The Government Pension Offset, enacted in the late 1970s, reduces Social Security benefits for the spouses, widows and widowers whose spouses received a pension from federal, state or local government. Both provisions were initially seen as a way to extend the solvency of Social Security, but public sector workers say it's come at their expense.
"This is the single best Christmas present that a public service retiree will ever get in their lifetime," Whitney-Asdourian said. "And it will be one that they will never forget."
With the penalties set to disappear, Whitney-Asdourian said she and her husband may give up the seasonal jobs they held to help bridge their collective gap in Social Security benefits.
"The major factor for me is the assurance that I will be able to continue meeting my living expenses throughout the rest of my retirement," said Ginette Rivard, a retired state worker and a former leader of the Maine State Employees Association.
With the penalties gone, Rivard said she believes young people will have more of an incentive to enter public service. Some eligible public sector workers may accelerate their plans to retire knowing that they'll receive their full Social Security benefits, she added.
For decades, members of Congress have tried to eliminate these Social Security penalties on public sector workers, but previous bills have never gotten votes on the House or Senate floor.
The Social Security Fairness Act overwhelmingly passed the House back in November, and in the early hours of Saturday morning, the measure cleared the Senate with a vote of 76-20. Along with Collins, Sen. Angus King was one of more than 60 Senate co-sponsors.
Both Rivard and Whitney-Asdourian said they tuned in to watch the senators vote.
“This is a victory for thousands of teachers, first responders and public servants in Maine, who through service to their community have been forced to forego their earned retirement benefits," Collins said Saturday in a statement. "I thank my colleagues for the overwhelming support this legislation has received, as it will help millions of Americans retire with dignity and receive the Social Security benefits they earned through years of work."
